Prior to Data Powell’s Speech, Stocks and the Dollar Rise – Europe Market Wrap

Stocks rose on Thursday, boosted by an optimistic outlook from chip equipment maker ASML Holding and hopes that interest rates will fall further in December.

The Stoxx 600 index rose 0.6% as ASML confirmed its optimistic 2030 projection, sending its shares up more than 5%. US futures were up by 0.1%, while the Dollar index extended its gain for a sixth day, holding near two-year highs.

With Thursday’s data revealing that the Eurozone economy increased 0.9% on an annual basis, as expected, investors are expecting the ECB to cut interest rates next month. In the US, yesterday’s inflation report has fuelled speculation about a possible Fed cut in mid-December.

Investors are attempting to strike a balance between easing inflation and falling interest rates and the prospect that Trump could implement tough tax and tariff vows, reigniting price increases next year. Confirmation of a Republican electoral sweep implies Trump has more policy leeway and restricts potential checks on his power.

The Euro plummeted as much as 0.5% to its lowest level in more than a year, while MSCI’s developing market currencies index declined for the fifth consecutive day.